Like April, restaurant owners must be aware of food costs, utilities, labor costs, preparation time, portion control, theft, and limited food waste as expenses over which you have some control. However, you must also be aware of fixed costs, like rent, mortgage, insurance, some utilities, etc. Not every item has the same profit margin, but when averaged, I encourage the total to be below 27% of gross income. At first, finding this balance may require some adjustment. But, adjusting early and often is the entrepreneurial way and increases the greatest chance of success.
Accounting, management, and marketing are the machines that help to fulfill the “who” and “why” of existence. But, that’s another subject for another time. Soon, we will talk about “how” to operate your business in a way that results in the best scenario for you, as the owner. And, then, we will discuss the “What” of your existence.
Until next time.